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Why The Banner Ad Is Heroic, and Adtech Is Our Greatest Artifact

By - November 17, 2013

hotwiredbanner

Every good story needs a hero. Back when I wrote The Search, that hero was Google – the book wasn’t about Google alone, but Google’s narrative worked to drive the entire story. As Sara and I work on If/Then, we’ve discovered one unlikely hero for ours: The lowly banner ad.

Now before you head for the exits with eyes a rollin’, allow me to explain. You may recall that If/Then is being written as an archaeology of the future. We’re identifying “artifacts” extant in today’s world that, one generation from now, will effect significant and lasting change on our society. Most of our artifacts are well-known to any student of today’s digital landscape, but all are still relatively early in their adoption curve: Google’s Glass, autonomous vehicles, or 3D printers, for example. Some are a bit more obscure, but nevertheless powerful – microfluidic chips (which may help bring about DNA-level medical breakthroughs) fall into this category. Few of these artifacts touch more than a million people directly so far, but it’s our argument that they will be part of more than a billion people’s lives thirty years from now.

There is one exception. The artifact we’re investigating is already at massive scale, driving billions of dollars in revenue and touching every person whose ever used the Internet. That artifact is currently called “programmatic adtech,” and it is most famously illustrated by Terry Kawaja’s Lumascapes (and less famously, my own “Behind the Banner” visualization).

lumascapedisplayYes, this is the infrastructure that allows a pair of shoes to chase you across the web. How can it possibly be as important as, say, a technology that may cure cancer? Because I believe the very same technologies we’ve built to serve real time, data-driven advertising will soon be re-purposed across nearly every segment of our society. Programmatic adtech is the heir to the database of intentions - it’s that database turned real time and distributed far outside of search. And that’s a very, very big deal. (I just wish I had a cooler name for it than “adtech.” We’re working on it. Any ideas?!)

Think about what programmatic adtech makes possible. An individual requests a piece of content through a link or an action (like touching something on a mobile device). In milliseconds, scores of agents execute thousands of calculations based on hundreds of parameters, all looking to market-price the value of that request and deliver a personalized response. This happens millions of times * a second,* representing hundreds of millions, if not billions, of computing cycles each second. What’s most stunning about this system is that it’s tuned to each discrete individual – every single request/response loop is unique, based on the data associated with each individual.

Let me break that down:

1. A person indicates a request: a desire, an intent, a preference - The Request

2. Billions of compute cycles and sh*tons of data are engaged to process that desire - The Process

3. A personalized response is generated within 100-250 milliseconds. - The Response

At present, the end result of this vastly complicated “Request Process Response” system is, more often than not, the proffering of a banner ad. But that’s just an artifact of a far more interesting future state. Today’s adtech has within it the glimmerings of a computing architecture that will underpin our entire society. Every time you turn up your thermostat, this infrastructure will engage, determining in real time the most efficient response to your heating needs. Each time you walk into a doctor’s office, the same kind of system could be triggered to determine what information should appear on your health care provider’s screen, and on yours, and how best payment should be made (or insurance claims filed). Every retail store you visit, every automobile you drive (or are driven by), every single interaction of value in this world can and will become data that interacts with this programmatic infrastructure.

OK. Let’s step back for a second. When you think of this infrastructure, are  you concerned? Good. Because it’s imperative that we consider the choices we make as we engage with such a portentous creation. This year alone, each human on the planet will create about 600 gigabytes of information, and that number is growing rapidly. What are the architectural constraints of the infrastructure which processes that information? What values do we build into it? Can it be audited? Is it based on principles of openness, or is it driven by business rules and data-structures which favor closed platforms? Will we have to choose between an oligarchy of “RPR vendors” – Google, Facebook, Microsoft – or will we take a more distributed approach, as the original Internet did?

These questions have been raised, and continue to be well articulated, by LessigZittrainWu, and many others. But we’re entering a new, more urgent era of this conversation. Many of these authors’ works warned of a world where code will eventually augur early lock down in political and social conventions. That time is no longer in the future. It’s now. And I believe as goes adtech, so goes our social code.

“Adtech” is a very important, very large application we’ve built on top of the platform we call “the Internet.” It’s driven by the relentless desire of capitalism to turn a profit, yet (so far) it has leaned toward the Internet’s core values of openness and interconnectivity. Thanks to that,  it’s suffering some endemic maladies (fraud comes to mind). It’s still a very young, relatively immature artifact. But so far, it’s more open than not. I’m not certain that will always be the case.

My argument boils down to this: What we today call “adtech” will tomorrow become the worldwide real-time processing layer driving much of society’s transactions. That layer deserves to be named as perhaps the most important artifact extant today.

Given adtech’s rise, let’s not forget its atomic unit of value: the oft-derided banner ad. In time the banner as we know it will most likely fade away, but its place in history is certain. One generation from now, we may not “click” on banner ads, but we’ll always be pulling into traffic, filing health insurance claims, buying clothes in retail stores, and turning up our thermostats. And those myriad transactions will be lit with data and processed by a real time infrastructure initially built to execute one pedestrian task: serve a simple banner ad.

  • Content Marquee

More than 200,000 Minutes of Engagement, and Counting

By - November 08, 2013

BehindBannerScreenShot

Some of you may recall “Behind the Banner,” a visualization of the programmatic adtech ecosystem that I created with The Office for Creative Research and Adobe back in May. It was my attempt at explaining the complexities of a world I’ve spent several years engaged in, but often find confounding. I like to use Behind the Banner in talks I give, and folks always respond positively to it, in particular when I narrate the story as it plays.

I realized yesterday that I didn’t know how many people had actually viewed the thing, and naturally as a creator I was curious. So  I pinged my colleague at Adobe, who of course are analytics pros, among many other things. What came back was pretty cool: The visualization has been viewed nearly 50,000 times, with an average time spent of well over 4 minutes per view. That’s more than 200,000 minutes of engagement, or more than one-third of a year! It’s certainly got nothing on the Lumascape, but it’s neat nonetheless.

The version above is really a “beta” – we all wanted to do so much more, but we had to ship it in time for the CM Summit this past May. I’m eager to make it better – create an embeddable version, lay down a narrative track, add more companies and richer detail, fix things folks feel need fixing. If anyone out there is game to help, let me know. It’d be a fun project to work on!

(PS – we found out last week that Behind the Banner has been shortlisted for the Kantar Information Is Beautiful awards. Hurrah!)

Google Now: The Tip of A Very Long Spear

By - October 09, 2013

Yesterday my co-author and I traveled down to Google, a journey that for me has become something of a ritual. We met with the comms team for Google X, tested Google Glass, and took a spin in a self-driving car. And while those projects are fascinating and worthy of their own posts (or even chapters in the book), the most interesting meeting we had was with Johanna Wright, VP on the Android team responsible for Google Now.

Some of you might respond – “Google what?!” – and that’d be normal. Google Now is one of those products that to many users doesn’t seem like a product at all. It is instead the experience one has when you use the Google Search application on your Android or iPhone device (it’s consistently a top free app on the iTunes charts). You probably know it as Google search, but it’s far, far more than that. It’s the tip of a very important spear for Google, and if you study its architecture, all manner of interesting questions and insights can be found about where Google – and the Internet – may be headed.

When you fire up the Google search application on your phone, Google Now is all the bits that are not the familiar search bar. Here’s a screen shot of my Google Now “home page”:

gnow

As you can see, the search bar, which in a PC format is usually the *only* thing one sees, is most certainly not the main event. Certainly it’s at the top, and voice search is prominently featured (I could write 1,000 words just on voice search…another time, perhaps). But, the screen is dominated by “cards” of information – in this case a reminder of a call I have coming up (Google Now integrates with my calendar and contacts), as well as information about my drive home (Google Now knows I usually drive home in the afternoon). If I were to scroll down, more “cards” of information are shown, including local weather, points of interest, and sports scores (when the SF Giants were playing this past summer, I’d see scores – because Google Now knew I searched for “SF Giants scores” a lot).

These cards are extremely important to understanding where Google is heading with not only search, but with all of its various services (the card interface is now incorporated into Google’s “knowledge graph” search results, Google+, Gmail, and Google Maps, among many others). First, the cards “know” things about me – most critically my location, but also my search history, my calendar and contacts, my browsing history, key links in my Gmail, and more. They show up based on what interests and needs that Google believes will be most important to me. In essence, they are very tangible expressions of Google’s pivot from being a company that answers search queries, to being a company that anticipates your most important questions in real time, and answers them before you ask.

This, of course, has been the holy grail of tech  for some time – predating Google and even Microsoft. But now that rich data streams course constantly through the silicon veins of a very personal mobile device, that long-held vision is becoming reality.

In short, Now is Google’s attempt at becoming the real time interface to our lives – moving well beyond the siloed confines of “search” and into the far more ambitious world of “experience.” As in – every experience one has could well be lit by data delivered through Google Now.

Google knows that this moment – the moment of our lives becoming data – is happening now, and the company is very, very focused on seizing it.

If you doubt my hyperbole, I’d not be surprised, but I tend to test such hyperbole on multiple senior sources working deeply inside Google. To each I posited this question: “Is Google Now one of the most important products  at Google today?” Each answered emphatically yes.

To see why, consider this message, which popped up on my screen as I was preparing to write this post:

share daily commute

This is Google, asking me if I’d like to let selected people know where I am, in real time, during my daily commute. Of course, I can only share that status with people who are also Google+ users (no option to share on Facebook, Twitter, Foursquare, etc) – and that’s my point. First, questions like these are habituating us to the idea of sharing intimate information about ourselves with others, in real time. Second, a feature like this is *only* available to Google Now because of its integration with Google+ – one platform is reinforcing the other. Will Google let others play in this sandbox? Such a feature raises a very important question about what kind of world we want to live in – a world dominated by tightly integrated vertical platforms, or a world, as David Weinberger elegantly stated it, made up of small pieces loosely joined?

It was this question that weighed on my mind as I sat down with Johanna Wright yesterday. Since introducing Google Now (and the extremely related Google Knowledge Graph), the company has introduced more than 40 cards – cards for hotels, car rentals, and other travel information (like boarding passes), cards for movies, events, music and local businesses, cards tracking your activity (like walking, biking, etc.), and cards for nearby restaurants. There’s even a card that listens to your TV and tells you what music is playing.

Sound familiar? It should, because, to put it in words we can all understand: There’s an app for that. Or rather, there are apps for each of those. Let me list just a few of them, in order what what I laid out above: Hotel Tonight, Expedia, Lyft, Sidecar, Travelocity; Fandango, NetFlix, Hulu, iTunes, Spotify, Eventful, Yelp, Foursquare; Fitbit, Jawbone Up, Fuelband, Human; OpenTable, Urban Spoon; Shazam.

Google Now supplants the need to open an app by surfacing cards – cards that magically turn into just the information you need, when you need it – *without having to go to an app to get it.*

You following where this is going? Google is potentially disrupting the app world much the way its Universal Search disrupted major web properties  - taking the most valuable service or information, and surfacing it up for free. You may recall that universal search was quite controversial when it came out, because it appeared to favor surfacing Google-owned properties, such as YouTube, Finance, and Maps, over other web properties. Now, six years later, Universal search is, well universal, and that debate, which included an FTC investigation,  is over. Google properties won.

It’s worth noting that a key product manager for Universal Search was Johanna Wright, now the VP over Google Now. With all this in mind, I asked Wright about Google’s plans for Now: Would it be an open platform, where third parties can compete to be surfaced based on merit, or would favored services win out? And would various commercial products and services be able to pay to get integrated into Now’s suggestions and services?

Wright was understandably careful with her words when approaching this question. She declined to talk about monetization and business models for Now, but she did note that Google’s overall philosophy was one that favored the open web. The key, she said, was that Google get the user experience for Now right. The business model will come later (though she did note that Google Offers was already integrated into Now).

While Wright deferred comment on Now’s business model, I have no doubts there are plenty of folks inside Google thinking long and hard about the next steps the company will take to monetize Wright’s work. For now (no pun intended), Google Now is, in the main, a closed platform – surfacing only information that Google has deemed worthy of being surfaced, and integrating on a selective basis with only those services that Google believes will add value its consumers  (Google’s restaurant card, for example, integrates with OpenTable). Just as it did with search, Google is angling to control a key moment of a person’s daily life and attention – the point at which we lift our phone up to receive new information. When and if Google Now become ubiquitous, I can certainly imagine that the question of access and fairness will once again be raised. This movie, it seems, is fated to play out once again.

Here Are the Companies I Chose For OpenCo SF This Year. Damn, That Was Hard

By - October 01, 2013

opencosfI spent about an hour today choosing which companies I plan to visit during next week’s OpenCo. And I have to say – despite my obvious bias as a founder of the event – the difficulty I had deciding only gets me more excited about participating. There are just so many great organizations opening their doors during this two-day festival, and it makes me so proud that this thing is, well, happening. I mean, it’s really happening – 135 or so companies are letting the public come inside, and they’re talking about what makes their  organization special, what makes it tick. And for two days, I get to hang out in their space, take notes, get inspired. It’s just…really cool.

I like this so much more than hanging out in yet another ballroom at a tech industry confab. I mean, I love those conferences. It’s great to see all my pals and meet new people. But OpenCo really is different. The serendipity of each company’s vibe, the instant social network that forms around each session (“So why did you come to see Rock Health?!”), the seemingly endless choices. Nearly 2500 people have registered, and we expect to break 3,000 by the end of the week. You can’t fit 3,000 people in the ballroom at The Palace Hotel. But the city will welcome us all next week. It’s just … cool.

So here are the companies I chose, and why:

Thursday, Oct. 10

9am: San Francisco Symphony (City Center). Whaaat? The symphony is an OpenCo? I know, that’s what I thought. But OpenCo Advisor Nancy Hellman Bechtle has brought many key arts players into the OpenCo fold, including American Conservatory Theatre, the American Institute of Architects, the California College of the Arts, Alonzo King LINES Ballet, the San Francisco Jazz Organization, the Children’s Creativity Museum, the San Francisco Opera, and SF MOMA. How many opportunities do you get to go hear from the leaders of these vibrant cultural institutions? Very, very cool.

Companies also going off at 9 am that I wish I could see: Event Brite, AIA, Google, and IFTTT (it was sold out already, damnit). 

wework10:30 am: WeWork SOMA (SOMA area). There are about half a dozen collaborative workspaces that will be opening their doors next week, but I chose WeWork because I liked the vibe of their mission: “Do what you love.” A focus on “beauty” in workspace seems to drive their approach, and I want to see that up close. The company has workspaces in many cities around the country, I’m hoping they’ll all be OpenCos someday.

Companies also going off at 10:30 that I wish I could see: SoundCloud (full already), Presidio Trust, Rackspace.

12:00 pm: High Fidelity, Inc. (SOMA area) Philip Rosedale’s at it again, this time with a head trip of a company that is pioneering a new approach to, well, time and space. (Rosedale founded the way-ahead-of-its-time Second Life). They’re re-imagining reality, based on, I kid you not, “sparse voxel octree data structures.” I gotta see this.

Companies also going off at 12:00pm that I wish I could see: Superfly Presents (my pals behind Bonnaroosfly and Outside Lands), Lit Motors (FULL!), Granicus, Rickshaw Bags, twofifteenmccann (did our logo design for OpenCo among other things!).

1:30 pm:  TechShop (SOMA/Downtown area). The concept of sharing resources is tearing up the old economy and making new kinds of innovation possible. I want to see it in action. From TechShop’s description: “Part fabrication and prototyping studio, part hackerspace and part learning center, TechShop provides access to over $1 million worth of professional equipment and software.” I’m in.

Companies also going off at 1:30pm that I wish I could see: Wired (for old times’ sake, but it’s already FULL), Dandelion Chocolate (more chocoloate in the world is a good thing), Net Power & Light, Ridepal….there are so many….

proj frog 23:00pm: Project Frog (Mission). By this point in my schedule, I’m starting to realize how many great companies I’m missing, but … chose we must. I liked Project Frog’s description – I’d never heard of it before. “Since 2006, Project Frog has been on a mission to revolutionize the way buildings are created by applying technology to overcome the inefficiencies of traditional construction.” When on earth am I ever going to get a chance to grok that idea in action? Apparently, next week! Cool.

Companies also going off at 3:00pm that I wish I could see: Dropbox (FULL!), the Kite Pitch Doctor, Exygy (I want to work with these guys!),  Innovate SF (Mayor’s Office of Civic Innovation – a great partner!), Stamen (love their work). 

 4:30pm: SF MOMA (Embarcadero). OK, I know what you’re saying. Opening with the Symphony, closing with MOMA? Well, yes. I don’t really engage with these amazing institutions in my day to day life, and I want to change that. The director of SF MOMA will present in a “on the go” space at Pier 24, because the museum is closed (it’s undergoing a massive expansion.) This is a chance to hear what’s happening at a world-class museum, from the person who’s running it. Hell yes I’m going.

Companies also going off at 4:30pm that I wish I could see: The Slanted Door  (yes, the restaurant group!), HomeJoy (starting a movement to change cleaning! I love it), Twyxt (cool service for couples), WideOrbit (adtech/platform). 

jawbone

And that’s just day 1.

Day 2, Friday Oct. 11, rolls like this:

9 am: Federated Media Publishing (Embarcadero). Well, I’m actually giving the presentation for this one, so I better have it on my sked, no? I’m really looking forward to participating as an OpenCo after helping to found OpenCo. How great is that? I’ll be talking about connecting data and publishing, because I believe independent publishers must understand their data to thrive in today’s Internet ecosystem.

Companies also going off at 9 am that I wish I could see: ACT, Jawbone (FULL!), Salesforce (FULL!), NextDoor.

10:30 am: Inner Circle Labs (SOMA). This firm specializes in PR for innovative companies in SF, and is bringing in a great panel of its own clients. I think the professional services that help startups are an underappreciated part of our landscape, and I’m looking forward to learning more about this firm.

Companies also going off at 10:30 am that I wish I could see: RocketSpace, Instructables, SV Angel  (FULL, damn you David and Ron, open more space!), gitHub.

12:00pm: Scoot Networks (SOMA). “Combining battery-powered scooters with smartphone technology, Scoot allows for quick, affordable, one way trips around San Francisco.” Enough said. I love the city bike share nets that are popping up all over the world, but in SF, sometimes you need a battery! Hey Scoot, we should do something to get folks around OpenCo, no?!

crave toysCompanies also going off at 12:00pm that I wish I could see: SF OperaTCHO (FULL!), Crave (sex toys with data!!!), CleanTech GroupGirl Ventures.

1:30 pm: Mad ValleyThis agency-driven incubator is having a lot of success lately, and though I’ve been to the space many times to see clients, I’ve never heard the pitch. I am really looking forward to getting smart on a venture I’ve been close to, but never really seen.

Companies also going off at 1:30pm that I wish I could see: Imagine H2O, Code for America (went last year!), Hotel Tonight

3:00 pm: yerdle. Look, how much stuff do you have sitting in your house that plagues you with guilt – it has value, but you’re not using it? But it’s too much work to figure out how to get it to a useful place in the universe, right? Enter yerdle – a way to share or give stuff you’ve got to those who want or need it. Love this idea.

Companies also going off at 3:00pm that I wish I could see: Bloomberg (FULL!), Viglink, isocket

4:30 pm: 99 Designs. This site has taken off, helping connect creatives and those looking for creative inspiration. I want to see what makes it tick.  I also want to learn how to become a good client of its services.

everlane

Companies also going off at 4:30pm that I wish I could see: Everlane (bespoke and transparent!), SEAGLASS, Hightail, IDEO (Full, DAMNIT).

Well, that’s it. A dozen amazing experiences await me next week, a dozen new groups of people, a dozen founders, idealists, and entrepreneurs telling their stories for us to hear.

I. Am. Stoked. Thanks to American Express OPEN Forum, Yahoo!, IPG/MediaBrands, the Mayor’s office, SFBIG, and the team at OpenCo (and all our wonderful partners) for making this possible. What an honor to say I was there at the founding of the OpenCo movement. If you’ve gotten all the way to this point in my post, GO REGISTER, IT’S FREE! 

See you out in the modern working city!

The Best Platform for Incubation Is the Web

By - September 10, 2013

egg_20hatch1(image) Yesterday in the course of my seemingly endless attempt to stay current in this industry, I came across this article on VentureBeat: Searching for the next Zuckerberg: A day in the life of a Lightspeed Fellow. It chronicles the experiences of the chosen few who have made it into a VC-backed incubator, focusing on two Stanford students who are trying to create a new sensor for lap swimming.

I recently took up the sport, and find the gadget interesting. But what really struck me was the casual use of Zuckerberg’s name in the headline, and how it was used in context of the ecosystem that has sprung up in the past five or so years around entrepreneurship. Don’t get me wrong, I think incubators and accelerators are important components of our business ecosystem. But I’ve always liked the fact that anyone with a great idea, access to the Internet, and an unrelenting will can spark a world beating company simply by standing up code on the Internet, and/or leveraging the information and relationship network that is the web.  That’s how Facebook started, after all. And Google, and Amazon, Twitter and eBay, and countless others. No gatekeepers, no contests, no hackathons or pre-seed rounds. A great idea, and a great platform: the Web.

I wonder if the next Larry Page or Mark Zuckerberg would ever start at Lightspeed, Y Combinator, or TechStars. Certainly amazing companies and ideas have come from inside those estimable establishments, and more will come in the future. But the peculiar fire which drives folks who are truly “the next Zuckerberg” – I wonder if that fire needs stoking from anything else than the Internet itself. If we institutionalize that fire, I think we lose something. A simple page on the open web, offering a service, waiting to be engaged with, to learn from that engagement, to rapidly iterate and grow, to fall down and fail and try again.

In the past few years, entrepreneurship seems to have become a profession, like acting or sales or architecture. On the one hand, that’s a good thing, it means more companies, more jobs, and more great ideas. On the other, something about it strikes me as a bit …forced. I can’t put my finger on it, quite yet, but it centers around the idea that we’re credentializing innovation.  That feels somehow off. The beauty of the innovation that flows from the open web is that no one has to ask for permission, get a credential, or win a Disrupt or Launch award to go prove their idea is worthy. They just…put up a page on the web, iterate, iterate, iterate…and eventually, a Facebook emerges.

I may be just an old school dude, reacting to how the kids are doing it now. Maybe – but I never saw starting companies as a career path. I saw it as something I just had to do – the only thing I could do. I plan to spend more time at these incubation spaces, to check my gut and see what I might be missing. Consider this some out loud thinking for a late Tuesday night. What do you think?

 

Four Minutes on the Future of Marketing

By - August 05, 2013

Earlier this year I sat down with a videographer at the Bazaarvoice Summit in Austin. He asked me about the future of marketing, in particular as it related to data and consumer behavior. Given what I announced earlier this morning, I thought you might find this short video worth a view. Thanks to Ian Greenleigh for doing all the work!

Great Content, Meet Great Targeting (And Reach)

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Today on the Federated site, I’ve posted a preview of something we’re working on for a Fall release. I’m cross posting a portion of it here, as I know many of you are interested in media and data-driven marketing.

It’s no secret that Federated Media has deep roots in content marketing: We re-imagined CM for the modern web eight years ago, and since then have executed thousands of content-driven programs with hundreds of awesome publishers, services, and brands. “All Brands Are Publishers” has been one of our core mantras since our founding. And each year we run the CM Summit, where the topic of native, content, and conversation-driven marketing across all digital platforms is dissected.

Back when I was first studying the intersection of brand marketing and technology – about the same time as The Search and the founding of FM – I started talking and writing about  “The Conversation Economy.” Its core theme is this: “In the future, all companies must learn how to have 1-1 conversations with their customers at scale, leveraging digital technologies.”

Back then, actually executing on such an idea seemed a pipe dream. Recall, this was before Twitter, before Facebook, and before the Lumascapes. But one reason I love this industry is that we can dream big, and a few short years later, those dreams can become reality.

With the proliferation of “native” platforms like Twitter, Google, Facebook, Tumblr, and blogs, the idea of “branded publishing” has truly caught on. Every major agency (and publisher) has a brand storytelling shop, some have gone so far as to declare publishing to be central to their future. This is a very good thing – the massive infrastructure of media and marketing is slowly reshaping itself to become more nimble and responsive to how the world actually communicates.

But storytelling alone isn’t enough to get the job done. As an industry we need a platform that allows us to distribute those stories to just the right people, at just the right time, in just the right context. Up until recently, the only platform that allowed that kind of precision was search – hardly a great story telling medium for marketers, and driven by direct response dollars, in the main.

In the past few years, programmatic adtech has erupted onto the scene, but again, this technology platform has been used primarily for direct response. Programmatic’s rise has in large part been driven by “retargeting” – the practice of identifying a customer who visits your site, then finding him or her across the web and serving ads related to what they saw during their visit. Retargeting is now a core conversion tool for sophisticated direct marketers. It’s why that pair of shoes you looked at on Zappos keeps following you around the web.

Two years ago, we developed a thesis at FM: Programmatic adtech was going to drive brand marketing, and the bridge between the two would be content marketing. That’s why we bought Lijit Networks, one of the largest independent adtech companies in the United States. We believed then, and even more so now, that programmatic + content marketing = brand building.

While direct response is important, building brand awareness, preference, and loyalty remains a fundamental need. Brands need a scaled way to tell their stories to the right people in the right context. In the past 18 months,  “scaled walled gardens” like Facebook land Twitter began to offer native advertising suites that offered just that promise (Tumblr offers a similar promise, one Yahoo! believes it can deliver upon).

But what about  the “rest of the Internet”? While it’s fun to try out new “native” sites like Buzzfeed, the web wants a scaled play in “content marketing” that also checks the boxes of efficiency and highly evolved targeting.

Well, we’d like to introduce you to FM’s newest product suite, which (for now) we’re calling “Content Reachtargeting.” Internally, we like to refer to this effort as the “Reese’s Peanut Butter Cup” of marketing – you have your chocolate of high-quality content mixed with the peanut butter of programmatic retargeting. A perfect combination.

(To read more about it, head over the FM site….)

Excellent Content Marketing: Dear NSA…

By - June 12, 2013

This short Slideshare deck, an extremely clever satire of the now infamous NSA slide deck, should be Slideshare’s marketing calling card. It’s a promotional gift to the service, timely, clever, and leveraging the product perfectly. If this ever happens to you, use it in your marketing!

Echoes of the Tide and Oreo executions that are getting such plaudits recently. Love it.

The Full First Day of CM Summit, In One Place

By - May 25, 2013

Thanks to our sponsor Google, we got the full first day of last week’s CM Summit, featuring Fred Wilson fresh from the Tumblr deal, Pinterest CEO Ben Silbermann, and about 20 speakers in between for your viewing pleasure. Enjoy!

Yahoo! And Tumblr: It’s About Display, Streams & Native at Scale

By - May 19, 2013

The world is atwitter about Tumblr’s big exit to Yahoo!, and from what I can tell it seems this one is going to really happen (ATD is covering it well).   There are plenty of smart and appropriate takes on why this move makes sense (see GigaOm) but I think a lot of it boils down to the trends driving Yahoo’s massive display business.

If there’s one thing we all know, it’s that a new form of native advertising is spreading throughout the Internet. It started with Google and AdWords, it spread to Twitter and its Promoted Tweets, and Facebook quickly followed with Sponsored Stories. At FMP, we have sponsored posts and our Native Conversationalist suite, which we are scaling now across the “rest of the web” – the smaller but super influential independent sites that we believe are major suppliers of  “the oxygen of the Internet” – the content that drives true engagement. Other companies are adopting similar strategies – Buzzfeed is building a content marketing network, and Sharethrough has moved past its “wrap a YouTube ad in a player and call it native” phase and into more truly native units as well.

The reason native works is because the advertising is treated as a unit of content on the platform where it lives. That may seem obvious, but it’s an important observation. When a brands’s content competes on equal footing alongside a publisher’s content, everyone wins. Those search ads – they win if they are contextually relevant and add value to the consumer’s search results. Those promoted tweets only get promoted if people respond to them – a signal of relevance and value.  The same is true for all truly “native” ad products. If the native ad content is good, it will get engagement. The industry is evolving toward rewarding advertising that doesn’t interrupt and is relevant and value additive. That’s a good thing.

Left out of this evolution, until now, has been Yahoo!. When you break it down, Yahoo! is a Very Large Display Advertising business, with a hefty side of search and a bit of this and that on top. And that display advertising business is going through a wrenching shift, as buyers move to more efficient programmatic channels (for a visualization, see my last post). CPMs (cost per thousand, the unit of value for display advertising) are rapidly declining for “standard display” units – the boxes and rectangles that built Yahoo! and much of the rest of the web.

It will take a couple of years for those ads to A/evolve into new forms that are standardized and B/be driven by data and real-time programmatic rules in ways that brands can really trust (it’s already working for direct response, but that’s not the end game). Display will always be around, but as I said, it’s in a significant evolutionary phase, and the short to mid term reality is this: CPMs are dropping, and Yahoo! has a massive display business.

At the same time, we’re all shifting our attention to mobile devices, and we’ve adopted the “stream” as our preferred method of content discovery and consumption. That stream doesn’t work so well with standard display. But it’s great for native units.

Yahoo! is already shifting its home page and other content sections to a stream like interface. Tumblr offers only native ad units (founder David Karp lifted his strategy pretty much wholesale from Twitter’s “the ad is the tweet” philosophy). And Tumblr was built from the ground up as an activity stream.

I’ll write another time about how I believe that display and native will eventually merge – via the programmatic exchange. For now, Yahoo’s move gives it an asset that its branded display sales force can sell as sexy: native, content-driven advertising at scale. A good move.